SINGAPORE - Properties put up for auction in the current fourth quarter have been snapped up quicker than in the previous six months, JLL data shows.
The proportion of properties sold at their first auction listing hit 90 per cent in the fourth quarter, well up from the third quarter's 80 per cent and second quarter's 54 per cent. The total value of auction sales so far in the fourth quarter was $13.7 million.
"Sellers are now more willing to lower price expectations in light of the weaker market conditions, whereas from the buyers' perspective, the anticipation of a potential relaxation of cooling measures alongside the expected rise of interest rates in the immediate horizon could have encouraged these purchases," JLL said, announcing the data on Tuesday.
The increase also came on the back of a larger number of residential properties put up for sale by mortgagees - usually banks, trying to recover loans where the borrower has defaulted.
The proportion of these properties out of the total sales value rose from 19 per cent in the first quarter to 46 per cent in the fourth quarter.
Ms Mok Sze Sze, JLL's head of auction and sales, sees more brisk business ahead.
"In 2015, the auction market is likely to see more sales listings put up by mortgagees, with a moderate increase from the 150 mortgagee listings witnessed in 2014. Again, the bulk of the listings will be non-landed residential properties in the prime sub-markets and landed homes from the suburban sub-market," she said.
"The pace of sales in auctions is anticipated to be similar to 2014, as property prices are projected to slightly decline in general while the market fundaments will likely hold strong."